Asia Pacific Data Center Cooling Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis.

The Asia Pacific data center cooling market size is expected to reach US$ 10,645.55 million by 2031 from US$ 2,769.64 million in 2023. The market is estimated to record a CAGR of 18.3% from 2023 to 2031.

Executive Summary and Asia Pacific Data Center Cooling Market Analysis:

In September 2021, Vantage Data Centers, a prominent global provider of hyperscale data center campuses, expanded into the Asia Pacific market through two acquisitions, marking a significant development in the region's data center industry. The expansion is supported by a substantial equity capital addition of US$ 1.5 billion, contributed by DigitalBridge Investment Management and other existing Vantage investors. The expansion enables Vantage to offer data center services across several key cities in Asia Pacific, including Tokyo, Osaka, Melbourne, Hong Kong, and Kuala Lumpur. This move is specifically aimed at catering to the needs of hyperscale, cloud, and large enterprise customers in the region. Vantage's entry into these markets is expected to have a substantial impact on the growth of the data center cooling market in Asia Pacific.

The requirement for sustainable and energy-efficient cooling solutions is becoming increasingly prominent in Asia Pacific. With cooling needs representing a significant portion of total data center energy demand, there is a growing emphasis on transitioning from air-based cooling to more efficient liquid cooling systems. This shift is driven by the benefits of reduced operational costs and environmental impact, as well as the ease of maintenance and self-containment of liquid cooling systems.

Asia Pacific Data Center Cooling Market Strategic Insights

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Asia Pacific Data Center Cooling Market Segmentation Analysis

Key segments that contributed to the derivation of the Asia Pacific data center cooling market analysis are component, cooling type, data center type, and industry vertical.

• Based on component, the Asia Pacific data center cooling market is segmented into air conditioning system, chillers, air handling units, cooling towers, heat exchangers, humidifiers, and others. The air conditioning system held the largest share of the market in 2023.
• Based on cooling type, the Asia Pacific data center cooling market is segmented into room based cooling, row based cooling, and rack based cooling. The room based cooling held the largest share of the market in 2023.
• Based on data center type, the Asia Pacific data center cooling market is segmented into hyperscale data center, colocation data center, wholesale data center, and enterprise data center. The hyperscale data center held the largest share of the market in 2023.
• Based on industry vertical, the Asia Pacific data center cooling market is segmented into IT and telecom, BFSI, healthcare, manufacturing, government and defense, media and entertainment, retail, energy, and others. The IT and telecom held the largest share of the market in 2023.

Asia Pacific Data Center Cooling Market Outlook

The future trend of AI-optimized cooling in the data center market is expected to gain traction in the coming years as organizations seek to efficiently manage excessive heat generated by using advanced technologies such as AI, machine learning, and edge computing. This trend is driven by the need to maintain optimal operating temperatures for high-density equipment, which is challenging for traditional cooling systems. AI-optimized cooling leverages artificial intelligence to dynamically monitor and adjust cooling systems in real-time, ensuring energy efficiency and hardware reliability in AI-driven data center environments. For instance, in 2024, companies such as Eaton introduced SmartRack modular data center solutions that integrate IT racks, cooling, and service enclosures, catering to the escalating need to incorporate machine learning, edge computing, and AI into the solutions. Additionally, in June 2024, Asetek and Fabric8Labs announced a partnership that might redefine the liquid cooling industry. At Computex 2024, these two innovative companies unveiled the AI-Optimized Cold Plate, a pioneering solution in liquid cooling technology designed to push the boundaries of performance and efficiency. As AI-optimized cooling continues to evolve, it is poised to play a paramount role in shaping the future of data center operations. It offers sustainable and efficient solutions for managing escalating thermal demands in modern data centers.

Cooling systems are often identified as the primary sources of noise in data centers, particularly due to the loud operation of compressors and fans, which can significantly impact the working environment for personnel within the data centers and the surrounding residents or workers. An increasing number of data center operators are acknowledging this concern, with some considering the adoption of liquid immersion cooling as a quieter alternative. In cases where data center operators are not yet ready to embrace immersion cooling, implementing straightforward adjustments to optimize airflow presents an effective strategy for mitigating the noise produced by traditional cooling systems.

Asia Pacific Data Center Cooling Market Country Insights

Based on country, the Asia Pacific data center cooling market comprises China, India, Australia, Japan, South Korea, and the Rest of Asia Pacific. China held the largest share in 2023.

Shanghai, Beijing, Guangzhou, Shenzhen, and Chengdu are a few of the largest and most significant cities in China concerning data center infrastructure and colocation services. According to BAXTEL, China currently has 92 facilities, with Equinix leading as the top provider with 8 sites, closely followed by iAdvantage (SUNeVision) with 7 facilities. Notably, the most popular facilities in China include Equinix Hong Kong HK1 and Global Switch Hong Kong. The country is exploring innovative solutions, such as leveraging ocean cooling to reduce the cost of cooling data centers and decrease the consumption of traditional energy sources. The demand for data center cooling in China is growing dynamically, driven by the increasing adoption of cloud computing, big data analytics, artificial intelligence, and the Internet of Things (IoT). As a result, the rising adoption of cooling solutions such as economizer systems, liquid cooling systems, control systems, air conditioning, chilling units, and cooling towers to address the evolving needs of various industries is fueling the market growth in China.

Asia Pacific Data Center Cooling Market Report Highlights

Asia Pacific Data Center Cooling Market Company Profiles

Some of the key players operating in the market Asetek, Inc; Mitsubishi Corp; Stulz SpA; Vertiv Group Corp.; Aspen Systems, LLC.; Daikin Industries Ltd; Delta Electronics Inc; Danfoss AS; Motivair Corporation; Madison Industries; Fujitsu Ltd; Rittal GmbH & Co KG; Schneider Electric SE; Trane Technologies Plc; Black Box Corporation; Carrier Global Corp; Alfa Laval AB; Hewlett Packard Enterprise Development LP; Boyd Corp; and Evapco Inc, among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Asia Pacific Data Center Cooling Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.
• Industry trade journals and other relevant publications.
• Government documents, statistical databases, and market reports.
• News articles, press releases, and webcasts specific to companies operating in the market.

Note: All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

• Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.
• Enhance the expertise and market understanding of the analysis team.
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

Asia Pacific Data Center Cooling Market Country and Regional Insights